2019年全年??演示投?者英文 - cr beer · overall results summary h2 2019 h2 2018 change fy...

FY 2019Financial and

Operational Review

InvestorPresentation

20 March 2020

Part IPerformanceReview

Overall Results SummaryH2 2019 H2 2018 change FY 2019 FY 2018 change

RMB m RMB m RMB m RMB mTurnover 14,365 14,302 - 33,190 31,867 +4%

EBIT (469) (599) +22% 2,163 1,465 +48%

EBIT excl. special items * 835 781 +7% 4,041 3,366 +20%

Profit attributable to shareholders (PAS) (559) (531) -5% 1,312 977 +34%

EPS (RMB) 0.40 0.30 +33%

DPS (RMB) 0.165 0.120 +38%

- Final 0.045 0.030 +50%

- Interim 0.120 0.090 +29%

Dividend payout ratio (Total dividend/PAS) 41% 40% +1% point

ROE ** 6.8% 5.2% +1.6% point

Additions to non-current assets 3,871 2,089 +85%

Net assets 19,727 18,910 +4%

Net cash 1,897 1,212 +57%

Cash ratio 9.7% 6.4% +3.3% point

3

Notes: * Total special items amounted to RMB1,878m (FY18: RMB1,901m), including (i) impairment loss on fixed assets and stocks of RMB1,052m

(FY18: RMB1,301m); (ii) compensation and staff settlement expenses related to production capacity optimization and organizational restructuring of RMB826m (FY18: RMB483m); and (iii) one-off annuity provision of its staff cost for 2017 in FY18 of RMB117m.

** ROE = PAS / Average of Equity attributable to shareholders of the Company·Moving Premium, Brewing Excellence·

Innovative Development , Transformation and Upgrade, Quality Growth

Increase in turnover and improvement in cost efficiency drove the improvement in both gross profit margin and EBIT margin.

H2 2019RMB m

H2 2018RMB m

change FY 2019RMB m

FY 2018RMB m

change

Sales volume (million kl) 5.059 5.072 -0.3% 11.434 11.285 +1.3%

ASP (in RMB/kl) 2,839 2,819 +0.7% 2,903 2,824 +2.8%

Turnover 14,365 14,302 - 33,190 31,867 +4%Gross profit 5,101 4,875 +5% 12,226 11,198 +9%EBIT (469) (599) +22% 2,163 1,465 +48%EBIT excl. special items* 835 781 +7% 4,041 3,366 +20%

GP margin 35.5% 34.1% +1.4% point 36.8% 35.1% +1.7% pointEBIT margin (3.3%) (4.2%) +0.9% point 6.5% 4.6% +1.9% pointEBIT margin (excl. special items*) 5.8% 5.5% +0.3% point 12.2% 10.6% +1.6% point

Beer

4

Sales volume of mid end and above : +8.8% in FY2019

Mainstream Mid-end and Mid-end high High-end and Super high-end* please refer to page 3 for details of the special items

·Moving Premium, Brewing Excellence·

RMB/kl

Improvement in GP/kl and EBIT/klUnder steady sales volume in the past 3 years, GP/kl and EBIT/kl enjoyed improvement.


-

7,000

14,000

0

400

800

1,200

FY17 FY18 FY19

GP/kl EBIT/kl EBIT/kl (excl. special items) Volume

Volumein ‘000 kl

RMB849/kl

RMB992/kl

RMB1,069/kl

RMB157/kl RMB130/kl

RMB189/klRMB237/kl RMB298/kl

RMB353/kl

5

3(1.2mkl)[-] Hubei

6(1.3mkl)[-1] Anhui

3(1.0mkl)[-] Henan

3(0.7mkl)[-] Shandong

1(0.3mkl)[-1] Tianjin

9(2.3mkl)[-] Liaoning

3(1.3mkl)[-1] Heilongjiang

3(0.8mkl)[-1] Guizhou

1(-)[-] Tibet

2(0.3mkl)[-1] Inner Mongolia

1(0.2mkl)[-] Gansu

2(0.3mkl)[-] Shanxi

6(2.6mkl)[+1] Zhejiang

2(0.7mkl)[-] JilinNumber of brewery plants: 74# (31 Dec 2018: 78#)

2(1.2mkl)[-] Hebei

5(1.3mkl)[-] Jiangsu

1(0.4mkl)[-] Shanghai

1(0.2mkl)[-] Fujian

9(2.2mkl)[-1] Sichuan

3(0.5mkl)[-] Hunan

RegionNo. of breweries(production capacity)[no. of breweries addition in past 12 months]

Having presence in 25 out of 34 regions/cities (incl., autonomous regions,municipalities and SAR) in China

Notation:

4(1.1mkl)[-] Guangdong

1(0.2mkl)[-] Ningxia

1(0.1mkl)[-] Guangxi

1(0.2mkl)[-] Shaanxi

# Excluding those breweries ceased operation and determined by management to be closed

Nationwide Geographcial Footprints

61(0.1mkl)[+1] Hainan


PAS (before share of 49% stake)

In RMB mTurnoverIn RMB m

Proven Growth Track Records

-

400

800

1,200

1,600

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

19941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019Turnover PAS (before share of 49% stake)

7·Moving Premium, Brewing Excellence·

Part IIOthers

• Strong local team with extensive industry and domestic experience

• Market leading position and well-known product portfolio

• Best-in-class, nationwide distribution network

• Nationwide coverage best positioned for growth

• Deep understanding of China and strong supports from China Resources Group

• Established in 1864 by the Heineken family

• No. 2 brewer in the world with distribution in over 190 countries

• Leading developer and marketer of premium beer and cider brands

• Committed to innovation, long-term brand investment

• Currently owns the only brewery in Hainan Province

Long Term Strategic Collaborationwith Heineken Complementary Strengths to Win in the Premium Beer Segment


Note: 1. As disclosed in the joint announcement at 3 August 2018, to the best of the directors’ knowledge, information and belief having made

all reasonable enquiry, the relevant Heineken Group entities and their ultimate beneficial owner(s) are third parties independent of CR Beer and its connected persons.

40%

TMLA and Framework Agreement

China Resources Beer (Holdings) Co., Ltd.

(291.HK)

CR Beer Existing Business & Heineken China Business

Heineken NV1China Resources Enterprise, Limited

CRH (Beer) Limited

60%

51.67%

100% (indirectly)

0.9%

Long Term Strategic Collaborationwith Heineken


Industry Leaders

Key Growth Drivers

CR Snow Strategic

Milestones

• China economic liberalization

• Regional expansion beyond core provincial markets

First Stage Regional Expansion

1990-1996

Second StageMarket Consolidation

1996-2010(1)

Third StagePremiumization

2010-2016(2)Future Development

• 1994 - CRSnow first entered the China market

• Set up first brewery facility in Shenyang province

CR Snow has been at the forefront of evolution, effectively positioning itself to capture outsized growth

• Inorganic growth / M&A• Critical success factors :

• Successful integration and realization of synergies

• Channel penetration• Increase in product quality and

operational efficiency

• Product premiumization and brand building

• Scale advantages drive operational leverage

• Continued M&A consolidation of smaller / medium sized players

• Increasing sophistication of Chinese consumer taste

• Ongoing premiumization• Packaging innovation and

conversion from glass to can• Gaining regional market share• E-commerce growth

• CRSnow expanded its presence into developed coastal regions via strategic acquisitions and organic growth

• Built nationwide CR Snow brand

• 2006 – CRSnow became the No.1 brewer in China by vol.

• CRSnow launched mid to high end brand portfolio

• 2013 – CRSnow acquired Kingway Brewery, significantly enhancing its presence in Southern China

• Product premiumization• Increase canned beer market

share• Upgrade breweries and drive

efficiency and productivity gains

/

#1 #2

#3 #4

#1 #2

#3

#1

Evolution of China Beer Market Evolution of China Beer Market in the Past 3 Decades

+


Notes1. Euromonitor International2. Company information

The Undisputed Leader in World’s Most Attractive Beer Market• China is the largest1 and most attractive beer market globally• Our sales volume achieved over 11 million kl since 2013

1

Proven Management Leadership• Experienced management team members who works in CR Snow for many years• Sponsorship from one of the leading SOEs in China

4

Proven Track Record of Double-Digit Growth Through Premiumization and Innovation • Turnover and PAS (before share of 49% stake) CAGR of 20% and 17%, respectively since inception in 1994• Increasing focus on premiumization of mid-end to high-end products

3

Full ownership of the beer business with faster response• Shareholders will enjoy full economic benefit of future earnings growth• Will enable faster responses to the dynamics of current beer market

5

Irreplaceable Heritage Brands and Well-recognized international brand• Snow (“雪花”) brand has the sales volume of more than 10 million kl• Strategic collaboration with the Heineken Group to expand into China’s premium market• Nationwide presence operating 74 breweries in 24 out 34 provinces in China

2

Leading Platform for Industry Consolidation• Leading market consolidator with successful acquisition and integration of domestic breweries in the past• Track record of M&A with 20+ acquisitions over previous years

6

Competitive Advantage


Note1.By volume according to CICC

Source: Company Filings, Company Information

High end on-trade channel

Other on-trade channel and

traditional retail channel

Modern retail channel

E-commerce channel

Specific sales force to target on-trade customers such as high-end restaurants and night clubs to promote sales of mid to high-end products

Build and maintain a strong channel and customer relationship

Urban markets

Established a flat distributor network by dividing targeted markets into smaller areas which eliminates layers of distributors

Allows for higher profitability, closer proximity to end customers and better management of distributors and retailers

Sales team at headquarters covers and negotiates with nationwide retailers directly

Regional sales teams coordinate negotiations with regional retailers and provide comprehensive sales support and monitor performance

Sales on e-commerce platforms such as T-mall Flagship stores on platforms such as Yihaodian, JD.com Establishing own e-commerce platform to directly interact with

end customers and consumers

Regional markets1

Maintain long standing relationships with local distributors to broaden coverage and penetration

Flat distribution model through careful and finer division of regional markets

Utilize secondary distributors to supply to rural areas

Distribution strategy focused on professionalism, exclusivity and flatness of network

Regional markets in smaller towns andrural areas

Sales Channel Strategy Differentiated Sales Channel Strategy with Unique on-the-ground Capabilities


Part IIIAppendix

Lower acquisition cost on M&As

Acquisitions related to CRB Acquisitions not related to CRBSource: Deutsche bank and Company data

0

500

1,000

1,500

2,000

2,500

Dec‐07 Dec‐08 Dec‐09 Dec‐10 Dec‐11 Dec‐12 Dec‐13 Dec‐14 Dec‐15 Dec‐16 Dec‐17

US$/klTsingtao acquired 39% stake in Yantai Beer Asahi (0.12mkl)

435

218171

435

Asahi acquired 20% stake in Tsingtao (1.40mkl)

293366463

105

Acquired the remaining 20% stake in Shenyang Brewery (0.02mkl)

97

Carlsberg acquired 12.25% stake in Chongqing Brewery(0.16mkl)

2,192

AB InBev sold 7% stake in Tsingtao (0.54mkl)

305

524750

137 168

584308593

Acquired 55% stake in Xihu beer (0.28mkl)

Acquired 45% stake in Xihu beer (0.22mkl)

145

531

Carlsberg increased 30.3% stake (become controlling stake) in Chongqing brewery (1.2mkl)

1,631

ABInbevacquired Henan Weixue (0.5mkl)

Carlsberg acquired 100% stake in Chongqing Beer Group Asset Management (0.48mkl)

Acquired 100% stake in Kingway Brewery (1.5mkl)

1,258

599

Fosunacquired 17.99% stake in Tsingtao (1.42mkl)

Yanjing acquired 90% stake of Henan Yueshan (0.36mkl)

864

Acquired 49% stake from SABMiller (9.9mkl)

Shenzhen JingyalongInvestment Co Ltd acquired 9.29% in Lanzhou Huanghe(0.03mkl)

258

Acquired 90% stake in Hupo brewery in Shandong (0.27mkl)

Appendix I – Historical Major M&As

Acquired 3 breweries in Liaoning, Anhui and Hunan (0.43mkl)

Acquired 10% remaining stake in CRB Binzhou (0.02mkl)

Acquired the 27% stake in CRB Zhejiang(1.89mkl)

Acquired 100% stake in Aoke beer (0.29mkl)

Acquired 100% in Shang QiuBrewery (0.15mkl)

Acquired 100% stake in Shandong Liaocheng (0.09mkl)

Tsingtao acquired 100% stake in Shandong Xin Immense Brewery (0.55mkl)

ABInbev acquired 100% stake in Jilin Ginsber (0.5mkl)

Acquired 70% stake in Guizhou Moutai Brewery (0.1mkl)


Hong Kong Institute of Directors

2006/2010/2012/2014/2016

Honored as one of the awardees in the Board Category for "Listed Companies (SEHK-Hang Seng Index Constituents)" in "Directors Of The Year Awards”

Institutional Investor

2012/2013/2016-2019

Consumer stapleBest Investor Relations Program: First in Overall (2016/2018/2019), First in Buy side (2016/2018/2019), First in Sell side (2016/2018/2019), Overall Best Corporate Governance (2019), Best Corporate Governance (2018/2019), Best ESG SRI Metrics (2018/2019), Best IR Companies: First in Buy (2013) and Sell Side (2012/2013), Best Analyst Days: (2016/2018) and Best Website: (2016), One of Asia’s Most Honored Companies (2016/2017/2018/2019) in The All-Asia Executive Team Survey

HKIRA 2015-2019 Best IR company – Large Cap (2018,2019)/Mid-cap (2015-2017), Best Investor Meeting – Large Cap (2018,2019),Best IR in Corporate Transaction – Large Cap (2019), Best Investor Presentation Material – Large Cap (2019),Best Annual Report – Large Cap (2019), Best IR Team – Large Cap (2019), Best IR presentation collaterals – Mid-cap (2016/2017), 3 years IR Awards Winning Company (2017) in HKIRA Investor Relations Awards

Appendix II – Major Awards Highlights of Accolades Received


Corporate Governance Asia

2010/2013-2019

2010-20182006-2014, 2017,20182013-2014

Best Investor Relations Company (2013-2019), Asia’s Best Corporate Social Responsibility (2013 – 2016) and Best Environmental Responsibility (2010, 2013 -2015) Asian Corporate DirectorsAsia’s Icon on Corporate Governance, Asia's Best Companies for Corporate Governance, The Best of Asia (China)Asian Company Secretary of the Year

IR Magazine 2012-2014, 2018-2019

2013/2014

2017

2018

Best in Sector – Consumer Goods & Services, Investor Relations by a Hong Kong Company (2012, 2013)

Global Top Mid-Cap (2013) and ranked 19th in Global Top 50 Gold (2013), Global Top 50 Silver (2014)

Best overall investor relations, Best in sector – Consumer staples, Best in country –Hong Kong, Best IR by sector management team (large cap)

Best corporate governance & disclosure

Oxfam 2017 Oxfam Corporate Donor Award in Corporate Donor Programme 2016-17

Tsinghua SEM China Business Research Center and National Business Daily

2018, 2019 Top 100 in Chinese Listed Companies By Brand Value 2018, 2019

Appendix II – Major Awards (Cont’d) Highlights of Accolades Received


MerComm, Inc. 2010-2018

Total 65 awards received9 Gold Awards: covering Traditional Format (“TF”), Interior design (“ID”), Printing & Production (“PP”), Cover Photo/Design (“CP/D), Overall Presentation in Beer/Wine/Spirits, Food and Supermarket Category (2013-2017)13 Silver Awards: covering Traditional Annual Report (“TAR”), Annual Report Overall Presentation (“AROP”), TF, CP/D, PP, Annual Report, ID in Beer/Wine/Spirits, Manufacturing & Distributing, Food and Retail Category (2010-2017)24 Bronze Awards: covering CP/D, TF, PP, Other and General, Non-Traditional Annual Report (“NTAR”), AROP, TAR, ID, Cover Design, Annual Report – Print (“ARP”) in Beer Manufacturing, Sales & Distribution, Beer/Wine/Spirits, Manufacturing & Distributing, Tobacco, Food & Beverage, Food, Supermarket and Convenience Stores Category (2011-2018); and19 Honors Awards: covering Infographics, ID, Printing, TF, TAR, AROP, Annual Reports Covers (Special Treatment), NTAR, Annual Report (Unique Presentation), Overall presentation and Cover Design, ARP in Food/Packaged Goods, Manufacturing & Distributing, Beer/Wine/Spirits, Beverage, Multi-Industry, Food, Supermarket, Consumer Goods Category: (2011, 2013-2018)

League of American Communications Professionals LLC

2013-2018

Platinum: Consumer Staples; Consumer –Food/Beverages/Tobacco category (2018)Gold: Consumer Staples; Consumer –Food/Beverages/Tobacco category (2013-2015/2017); Retailing – Multi-line Retail category (2013), Silver: Consumer Consumables category (2016), Retailing – Multi-line Retail category (2014); Retailing – Food and Specialty category (2013/2014) Ranked 45th in Top100 Winners Report – Worldwide (2018), Ranked 22th/44th/65th in Top 50/80 Winners Reports – Asia Pacific Region (2016-2018); Top 80/60/40 Chinese Reports (2016-2018), Most Creative Report in Asia-Pacific Region (2018) and Technical Achievement Award (2018) in Vision Awards Annual Report Competition (Annual Report and ESG report for 2017 awards)



HKIFAPC 2013-2018 Award for Outstanding Listed Company of the Year

The Mirror Monthly Magazine

2012-2018 Received Outstanding Corporate Social Responsibility Award

Fortune China 500 2011-2019 Ranked number 39/46/37/40/38/194/222/252/274

China Financial Market

2017 Most Valuable Brand Award in China Financial Market Listed Company Awards 2016

Hong Kong Economic Journal and PR Asia

2017 Listed Company Award of Excellence (Main Board – Large Market Capitalization) in Listed Company Award of Excellence

Asiamoney 2010/2012

2011

Overall Best companies in Asia for Corporate Governance, Best awards in Asia region (ex-Japan) for disclosure and transparency, responsibilities of management and the board of directors, shareholders' rights and equitable treatment, Best for Investor Relations (2012)Best awards in Hong Kong region for overall corporate governance, disclosure and transparency, responsibilities of management and the board of directors, shareholders' rights and equitable treatment, investor relations and investor relations officer (2010)

Best awards: Investor relations, Ranked second: Best for overall for corporate governance, disclosure and transparency, responsibilities of management and the board of directors and shareholders’ rights and equitable treatment in Hong Kong region



Economic Digest 201920182005-2016

Outstanding Enterprise Award, Excellence AwardOutstanding ESG AwardNamed one of Hong Kong Outstanding Enterprises

Yazhou Zhoukan 2010, 2012-2016, 2018

2011

“Outstanding Performance Award” (2010,2012) ,“The Largest Conglomerates Company Award” (2013-2015) ,“The Largest Food and Beverage Company Award” (2016,2018) in Global Chinese Business 1000"The Largest Capitalization Company Award" in Mainland Enterprises Listed in Hong Kong Ranking

Forbes 2011-2016 Ranked number 981/861/800/1067/1200/1628 in Global 2000

The Asset 2009/ 2010/2012-2016

Platinum award: 2009/2010/2016Gold award: 2012-2015 in The Asset Corporate Awards

CAPITAL and CAPITAL Weekly

2011-2015

2019

Awarded as one of the companies receiving the commendation in Corporate Social Responsibility AwardExcellence Performance Award

Ta Kung Pao 2011/2014/2016

Best Investor Relations Company (2016); Best Corporate Governance for Listed Companies, Best Information Disclosure for Listed Companies (2014); Best Management Team Award (2011) in Golden Bauhinia Award

CAPITAL 2010- 2014 "CAPITAL Outstanding China Enterprise Award-Consumer Goods" inThe CAPITAL Outstanding China Enterprise Awards

Please refer to our company website, www.crbeer.com.hk, for further details of others awards received.



Data and information contained in this presentation is provided for informational purposes only. NeitherChina Resources Beer (Holdings) Company Limited nor any of its subsidiaries shall be liable for any errorsor delays in the content, or for any actions taken in reliance thereon.

This presentation and subsequent discussion may contain forward-looking statements that are based onthe current beliefs, assumptions, expectations, estimates, and projections of the management of ChinaResources Beer (Holdings) Company Limited about its business and the industry and markets in which itoperates. These forward-looking statements include, without limitation, statements relating to revenues,earnings and stock performance. The words “believe”, “intend”, “expect”, “anticipate”, “project”, “estimate”,“predict” and similar expressions are also intended to identify forward-looking statements. Thesestatements are not guarantees of future performance and are subject to risks, uncertainties and otherfactors, including but not limited to price fluctuations, actual demand, exchange rate fluctuations,development outcomes, market shares, competition, environmental risks, changes in legal, financial andregulatory frameworks, international economic and financial market conditions, political risks, project delay,project approval, cost estimates and other risks, which are beyond the control of China Resources Beer(Holdings) Company Limited and are difficult to predict. Consequently, actual results could differ materiallyfrom those expressed or forecasted in the forward-looking statements.

Disclaimer


2019年全年??演示 投?者 英文 - cr beer · overall results summary h2 2019 h2 2018 change fy...

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2019年全年??演示投?者英文 - cr beer · overall results summary h2 2019 h2 2018 change fy...